Difference between invoice and receipt- If you want to be a businessman or businesswoman, there’s a lot of things that you need to think about. Besides providing the products or services, preparing a record of transactions is vital too. As long as you don’t create a record of transactions, your customer is not willing to pay for it.
The question is how can a record of transactions be so important for your business?
IRS (Internal Revenue Services) states that there are a few reasons why keeping transaction records will be useful for your business planning in the future. Here’s why:
1. Monitor the progress of your business.
2. Calculate income and expense for financial statements.
3. Identify the source of income.
4. Calculate monthly or yearly taxes.
5. Track the history of income.
Not all transactions can be recorded properly. For some reason, there are some businessmen and businesswomen who don’t understand about it at all. To avoid confusion, Paper.id will explain to you the difference between invoice and receipt. Do you know this written document?
Difference Between Invoice and Receipt
Invoice and receipt are two different types of transaction records. Both of them are a written document or a form of electronic slip to record customer’s transaction details. But, do you realize that an invoice has to be sent before receipt? Does it mean that a receipt is more important than an invoice? That’s not entirely true.
Invoice is a written document sent to the buyer before they receive the product. This document informs the buyer about the total price, quantity, and also the due date. After an invoice is sent, the buyer should pay the bills before it’s due. In other words, an invoice is proof of agreement between the seller and the buyer.
Whereas a receipt is different than an invoice. This written document shows that the customer has paid off their bills. It means that the receipt will be delivered to the customer after they pay what is due.
Create Online Invoice and Receipt
Invoice and receipt can be created through writing on a piece of paper or typed on a computer. Which one is easier? Creating an invoice and a receipt online would be the best choice for your business. Why? Because you can create and record the transaction anywhere and anytime. You can start creating your first transaction record at Paper.id!
Why should you choose Paper.id? It’s free and easy to use! You can access Paper.id by using your laptop or on your smartphone (download it on Google Play now!). Besides creating invoices and receipts, you can also record your financial statements and manage your stocks properly. If you can use it now, why do you have to find something else?
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